The global semiconductor foundry market is projected to generate USD 236.3 billion revenue by 2030, advancing at a CAGR of 7.2% during 2024–2030. This can be ascribed to the surging demand for integrated circuits from the growing consumer electronics, automotive, medical, and other sectors, the increasing adoption of IoT-enabled devices, and the rising government funding for the development of the semiconductor industry.
In addition, semiconductors are vital elements in electronic devices in numerous sectors, such as communication, automotive, computing, healthcare and medical, and defense, and significant emerging technologies such as AI and quantum computing. Moreover, in recent years, a rapid shift has been seen in consumer behavior, which has pushed the world into a technology-driven focus. Furthermore, governments and industry participants are strongly following the developments in the microelectronics industry since these technologies can potentially fuel the demand for semiconductors and R&D for microelectronics.
During the COVID times, firms efficiently moved their operations online and permitted employees to work remotely and safely without interruption, with the help of technologies and devices powered by semiconductors. Thus, the demand has grown at a very high pace for infrastructure and devices for supporting the new work-from-home and educate-from-home settings. Hence, digital transformation has provided a lot of opportunities in the semiconductor industry.
Globally, the APAC market held the largest revenue share, of 45%, in 2023. This is attributed to the support of governments for the growth in the semiconductor sector, the surging economies, and the growing end-use industries, in the region.
In APAC, China is the market leader, due to the growing end-use industries in the country. Also, China is moving progressively closer to self-reliance in the production of 7nm chips. Moreover, the country is witnessing several investments from companies such as TSMC, as well as local companies including Huawei entering into manufacturing chips.
Furthermore, India has evolved as one of the fastest-growing markets, globally, owing to its huge population. In the coming years, the Indian automotive and semiconductor industries will rise rapidly, which will open new opportunities for semiconductor players in the upcoming years. Also, in the last few years, India's share of the global electronic systems manufacturing industry has increased significantly. Technological transitions, including the deployment of IoTs and 5G networks, are increasing the implementation of electronic items. Various initiatives including 'Smart City' and 'Digital India' programs are further fuelling the demand for electronic devices, which, in turn, drives the demand for semiconductor foundry.
Major players operating in the semiconductor foundry market include Taiwan Semiconductor Manufacturing Company Limited, GlobalFoundries U.S. Inc., United Microelectronics Corporation, Semiconductor Manufacturing International Corporation, Samsung Electronics Co. Ltd. (Samsung Foundry), DB HiTek Co. Ltd., Intel Corporation, Hua Hong Semiconductor Limited, Powerchip Semiconductor Manufacturing Corporation, and STMicroelectronics NV.